SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
Amendment No. 2
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): OCTOBER 21, 1998 (MARCH 19,
1998)
TIER TECHNOLOGIES, INC.
(Exact name of registrant as specified in its charter)
CALIFORNIA 000-23195 94-3145844
(State or other jurisdiction of (Commission (IRS Employer Identification No.)
incorporation) File Number)
1350 TREAT BOULEVARD, SUITE 250 94596
WALNUT CREEK, CALIFORNIA (Zip Code)
(Address of principal executive offices)
(925) 937-3950
(Registrant's telephone number, including area code)
On October 13, 1998, Tier Technologies, Inc. (the "Registrant") announced
that it would restate its financial statements for the nine-month fiscal year
ended September 30, 1997 and for the two subsequent quarters ended December 31,
1997 and March 31, 1998 to reflect changes in the accounting for certain
payments made in connection with two business combinations. This filing amends
the Form 8-K/A filed on May 7, 1998 to provide restated pro forma financial
information in connection with the Registrant's acquisition of certain assets
and liabilities of Sancha Computer Group Pty Limited.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(b) Pro forma financial information.
Introduction
Pro Forma Condensed Consolidated Statement of Income for the six months
ended March 31, 1998 (unaudited and restated)
Pro Forma Condensed Consolidated Statement of Income for the nine months
ended September 30, 1997 (unaudited and restated)
Notes to Pro Forma Condensed Consolidated Financial Statements (unaudited
and restated)
1
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
TIER TECHNOLOGIES, INC.
By: /s/ George K. Ross
------------------------------------------
George K. Ross
Executive Vice President and Chief Financial Officer
Date: October 21, 1998
2
UNAUDITED PRO FORMA CONDENSED
CONSOLIDATED FINANCIAL INFORMATION
The unaudited and restated pro forma condensed consolidated statements of
income data for the six months ended March 31, 1998 and the nine months ended
September 30, 1997 set forth below give effect to the acquisition of certain
assets and liabilities of Albanycrest Limited ("Albanycrest") and Sancha
Computer Group Pty Limited ("Sancha"), as if both occurred on January 1, 1997.
The unaudited and restated pro forma condensed consolidated financial
information set forth below reflects certain adjustments, including adjustments
to reflect the amortization of the intangible assets. The unaudited and restated
pro forma condensed consolidated financial information set forth below does not
purport to represent what the consolidated results of operations or financial
condition of the Company would actually have been if the Albanycrest and Sancha
acquisitions and related transactions had in fact occurred on such date or to
project the future consolidated results of operations or financial condition of
the Company.
F-1
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT
OF INCOME FOR THE SIX MONTHS ENDED MARCH 31, 1998
SANCHA
COMPANY FOR THE FIVE PRO FORMA PRO FORMA
FOR THE SIX MONTHS ENDED BUSINESS FOR THE SIX
MONTHS ENDED FEBRUARY 28, COMBINATION MONTHS ENDED
MARCH 31, 1998 ADJUSTMENTS MARCH 31,
1998 (1) COMBINED (3) 1998
------------ ------------- -------- ------------ ------------
(RESTATED) (RESTATED) (RESTATED) (RESTATED)
Revenues ................................................ $ 21,822,563 $ 3,060,957 $24,883,520 $ - $24,883,520
Cost of revenues ........................................ 14,436,706 2,041,731 16,478,437 - 16,478,437
------------------------------------------------------------------------
Gross profit ............................................ 7,385,857 1,019,226 8,405,083 - 8,405,083
Costs and expenses:
Selling and marketing .............................. 1,416,145 - 1,416,145 - 1,416,145
General and administrative ......................... 3,703,190 257,396 3,960,586 - 3,960,586
Compensation charge related to business
combinations ................................. 552,134 - 552,134 - 552,134
Depreciation and amortization ...................... 369,045 5,085 374,130 151,872 526,002
------------------------------------------------------------------------
Income from operations .................................. 1,345,343 756,745 2,102,088 (151,872) 1,950,216
Interest income ......................................... 407,799 5,181 412,980 - 412,980
Interest expense ........................................ 83,039 142 83,181 - 83,181
------------------------------------------------------------------------
Income before income taxes .............................. 1,670,103 761,784 2,431,887 (151,872) 2,280,015
Provision for income taxes .............................. 676,393 75,054 751,447 171,959 923,406
------------------------------------------------------------------------
NET INCOME .............................................. $ 993,710 $ 686,730 $ 1,680,440 $ (323,831) $ 1,356,609
=========== ========== =========== ========== ===========
PRO FORMA BASIC NET INCOME PER SHARE (4) ................ $ 0.18
===========
SHARES USED IN COMPUTING PRO FORMA
BASIC NET INCOME PER SHARE (4) ..................... 7,690,705
===========
PRO FORMA DILUTED NET INCOME PER SHARE (4) .............. $ 0.15
===========
SHARES USED IN COMPUTING PRO FORMA
DILUTED NET INCOME PER SHARE (4) ................... 9,000,800
===========
See accompanying notes.
F-2
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF
INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997
ALBANYCREST SANCHA
COMPANY FOR THE SIX FOR THE NINE
FOR THE NINE MONTHS ENDED MONTHS ENDED
MONTHS ENDED JUNE 30, SEPTEMBER 30,
SEPTEMBER 30, 1997 1997
1997 (1) (1)
------------- ------------ -------------
(RESTATED)
Revenues ...................................................... $ 22,478,643 $ 1,366,859 $ 5,259,723
Cost of revenues .............................................. 14,916,846 1,281,856 3,473,715
----------------------------------------------------
Gross profit .................................................. 7,561,797 85,003 1,786,008
Costs and expenses:
Selling and marketing .................................... 1,836,082 - -
General and administrative ............................... 4,397,315 7,057 671,156
Compensation charge related to business combinations ..... 469,422 - -
Depreciation and amortization ............................ 258,504 - 4,700
----------------------------------------------------
Income from operations ........................................ 600,474 77,946 1,110,152
Interest income ............................................... 70,429 - 12,656
Interest expense .............................................. 169,299 - 354
----------------------------------------------------
Income before income taxes .................................... 501,604 77,946 1,122,454
Provision for income taxes .................................... 201,390 17,721 161,237
----------------------------------------------------
NET INCOME .................................................... $ 300,214 $ 60,225 $ 961,217
============ ============ ============
PRO FORMA BASIC NET INCOME PER SHARE (4)
SHARES USED IN COMPUTING PRO FORMA
BASIC NET INCOME PER SHARE (4)
PRO FORMA DILUTED NET INCOME PER SHARE (4)
SHARES USED IN COMPUTING PRO FORMA
DILUTED NET INCOME PER SHARE (4)
PRO FORMA PRO FORMA
BUSINESS FOR THE NINE
COMBINATION MONTHS ENDED
ADJUSTMENTS SEPTEMBER 30,
COMBINED (2)(3) 1997
-------- ----------- -------------
(RESTATED) (RESTATED) (RESTATED)
Revenues ..................................................... $ 29,105,225 $ - $ 29,105,225
Cost of revenues ............................................. 19,672,417 - 19,672,417
----------------------------------------------------
Gross profit ................................................. 9,432,808 - 9,432,808
Costs and expenses: -
Selling and marketing ................................... 1,836,082 - 1,836,082
General and administrative .............................. 5,075,528 - 5,075,528
Compensation charge related to business combinations .... 469,422 469,422
Depreciation and amortization ........................... 263,204 293,888 557,092
----------------------------------------------------
Income from operations ....................................... 1,788,572 (293,888) 1,494,684
Interest income .............................................. 83,085 - 83,085
Interest expense ............................................. 169,653 - 169,653
----------------------------------------------------
Income before income taxes ................................... 1,702,004 (293,888) 1,408,116
Provision for income taxes ................................... 380,348 182,899 563,247
----------------------------------------------------
NET INCOME ................................................... $ 1,321,656 $ (476,787) $ 844,869
============ ============ ============
PRO FORMA BASIC NET INCOME PER SHARE (4) ..................... $ 0.15
============
SHARES USED IN COMPUTING PRO FORMA
BASIC NET INCOME PER SHARE (4) .......................... 5,450,773
============
PRO FORMA DILUTED NET INCOME PER SHARE (4) ................... $ 0.14
============
SHARES USED IN COMPUTING PRO FORMA
DILUTED NET INCOME PER SHARE (4) ........................ 5,845,368
============
See accompanying notes.
F-3
NOTES TO UNAUDITED PRO FORMA CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
Pro forma adjustments for statements of income for the six months ended
March 31, 1998 and the nine months ended September 30, 1997 are as follows:
(1) The Albanycrest and Sancha condensed statements of income are
presented after translation using the local currency as the functional
currency.
(2) Reflects the amortization of intangible assets acquired in the
Albanycrest acquisition recorded at $246,207 amortized over a six-year
period.
(3) Reflects the amortization of intangible assets acquired in the Sancha
acquisition recorded at $5.2 million amortized over eight to fifteen
year periods.
(4) Basic net income per share is computed using the weighted average number
of shares of common stock outstanding. Diluted net income per share is
computed using the weighted average number of shares of common stock
outstanding plus all common stock equivalents. Basic and diluted net
income per share amounts have been adjusted to reflect the issuance of
51,213 shares of Class B common stock issued as part of the Sancha
acquisition. The 51,213 shares of Class B common stock have been
included in the weighted average shares as if the shares had been
outstanding for all periods presented.
F-4